MANAGEMENT, GHAZIABAD ENGINEERING CO (P) LTD. vs ITS WORKMEN

The Supreme Court held that gratuity should typically be based on basic wages rather than consolidated wages, as established in previous cases such as British Paints (India) Ltd. v. Its Workmen. The Court found no evidence of the company making abnormally high profits or a precedent in the industry justifying a departure from this norm. The Tribunal's decision to award dearness allowance at a flat rate was upheld, as the financial position of the company was sound, and the Court declined to interfere with the Tribunal's findings under Article 136.